A proposed mixed-use development at 101 W. Washington Street in downtown Osceola has taken a significant step toward becoming reality following the award of more than $700,000 in Iowa Workforce Housing Tax Credits toward the project.
The Washington, being developed by H&F Development Partners, was approved by the Osceola City Council in May and calls for a new mixed-use building on the northwest corner of the historic downtown square. The development will combine ground-floor commercial space with 22 residential units, bringing new housing and additional business activity directly into the heart of downtown.
“The Washington” proposed development for Osceola’s historic downtown square.
The state tax credit award was announced September 8 by the Iowa Economic Development Authority (IEDA) as part of $39.84 million in tax credits awarded to 69 housing projects across the state. The Washington was among the projects selected through a competitive process that considered factors including project readiness, available financing, community impact, developer experience and innovation.
For Osceola, the award represents an important milestone in bringing a long-discussed housing need together with the continued revitalization of the downtown square.
The need for additional quality, attainable rental housing has been identified locally for several years. The Clarke County Development Corporation’s (CCDC) 2024 housing study found that rental housing remains an important component of Osceola’s housing needs, while CCDC’s current housing information cites average monthly rents between $950 and $1,200 a month depending on number of bedrooms and amenities.
Osceola’s Comprehensive Plan likewise identifies housing as a significant community priority and calls for expanding housing choices, including additional attached and multifamily options. The plan also places an emphasis on strengthening and revitalizing the downtown area. The Washington responds to both objectives by putting new residential units where they can have a direct impact on the community’s existing commercial core.
The project will place 22 new homes within walking distance of downtown businesses, restaurants, services, community events and the newly renovated square.
“While the community continues to mourn the loss of the R.M. Lewis Building – one of the cornerstone structures in our downtown historic district lost to fire in April of 2022 – the community should also be incredibly excited about The Washington.” said Ty Wheeler, Osceola City Administrator. “This project represents a rare opportunity to create a new anchor property in its place. It’s exceptionally rare for a community the size of Osceola to see this scale of new construction within its downtown district. The Washington represents an important investment in the future of our downtown and our community as a whole.”
The project also represents an opportunity to add new housing while maintaining the character and architectural integrity of Osceola’s historic downtown.
The planned building will include ground-floor commercial space and will be designed in accordance with historic preservation guidelines, helping the new development complement the character of the surrounding square while introducing a modern use for the site.
The combination of residential and commercial space is intended to create a more active downtown at all hours of the day. Residents will become new customers for existing downtown businesses while the additional commercial space creates an opportunity to expand Osceola’s retail and service footprint.
For downtown businesses, that can mean more potential customers within a few steps of their front doors. For the community, it means more people living, working, shopping and spending time in the center of Osceola.
The timing of the project is particularly significant as Osceola completes its substantial renovation of the historic downtown square.
The square improvements are creating a renewed gathering place and enhancing one of the community’s most recognizable assets. The addition of 22 residential units immediately adjacent to that investment provides an opportunity to put more residents within the center of that revitalized district.
The project also aligns with CCDC’s broader efforts to address housing as a component of community and economic development. Quality housing choices help communities attract and retain residents, support employers and create the population base necessary for businesses and community amenities to thrive.
With the state tax credit award now secured, The Washington, LLC and H&F Development Partners can move forward with the next phase of the development. Development and planning are now proceeding forward, and H&F Development Partners will break ground by next June. Units will be open in 2028.
Additional information regarding construction, commercial space availability, residential units and leasing will be announced as the project progresses.
The Washington represents another step in Osceola’s ongoing effort to strengthen its downtown, expand housing choices and create a more vibrant community for current and future residents.
For more information on The Washington development, please contact Ty Wheeler, Osceola City Administrator at Osceola City Hall 115 N Fillmore St, Osceola, IA 50213, phone: 641-342-2377.
